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trapecia [35]
3 years ago
7

Before you started applying for college, a job recruiter offered you a full-time cashier position at a department store, earning

an after-tax salary of $24,000 per year. However, you turn down this offer and attend your first year of college. The additional monetary cost of college to you, including tuition, supplies, and additional housing expenses, is $38,000.You decide to go to college, probably because:_______
Business
1 answer:
anygoal [31]3 years ago
3 0

Answer:

Because as an individual or person i value a year of college at more than $62,000

Explanation:

Solution

Because a year of college at more than $62,000  is valuable or important to me.

It is important to know that the total opportunity cost of attending the first year of college is the total of the lost earning and additional monetary cost of college.

Since you expect that college education is going to give you a greater economic earnings then you are valuing college education in the first year more than $63,000 which is its opportunity cost .

You might be interested in
. Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To bu
VladimirAG [237]

Answer:

The correct option is B

Explanation:

In order to compute the profit, the accountant consider the Explicit cost so,

Explicit Cost = Borrowed amount × Interest rate + Ingredients amount

                     = $30,000 ×  3% + $25,000

                     = $259,000

Where Revenue is $60,000

Profit = Revenue - Explicit Cost

        = $60,000 - $259,000

        = $34,100

Economic Profit is computed as:

Economic Profit = Total Profit - Implicit Cost

                          = $34,100 - $40,600

                          = - $6,500

where

Implicit Cost = Salary + Interest

                = $40,000 + ($20,000 × 3%)

                =  $40,000 + $600

                = $40,600

Therefore, Louis says profit is $34,100 and Greg says she lost $6,500

5 0
3 years ago
Debt-to-equity ratio is:
babymother [125]
The D/E ratio indicates how much debt a company is using to finance its assets relative to the value of shareholders' equity
5 0
3 years ago
Raul wants to join the directors of World Trade but currently owns no shares in the company. He knows that no one else will help
erica [24]

Answer:

$294,412.8

Explanation:

In order to obtain a seat on the board of directors, Raul must hold more than 50 percent of the total number of outstanding shares if there are three open seats and straight voting occurs.

Total number of shares required = (46,000 ÷ 2) + 1

= 23000 + 1

= 23,001 shares

Market price of share = $ 12.80

Total amount = Total number of shares required × Market price of share

= 23,001 × $ 12.80

= $294,412.8

The amount Raul wants to invest on obtaining a seat on board of directors is $294,412.8

7 0
3 years ago
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a
zepelin [54]

Answer:

a. $700,000

b. 6/7 or 85.7%

c. No they will not.

Explanation:

a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.

Incremental income = Revenue with Jacobs - Revenue without Jacobs

= 1,000,000 - 400,000

= $600,000

Jacobs earnings = Normal designer earnings + incremental income

= 100,000 + 600,000

= $700,000

b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.

Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.

Proportion of Jacobs salary that is economic rent = \frac{Economic rent}{Jacobs annual earning}

= \frac{600,000}{700,000}

= 6/7 or 85.7%

c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.

8 0
3 years ago
Problem 7-28 Nonconstant Growth (LO2) Planned Obsolescence has a product that will be in vogue for 3 years, at which point the f
LuckyWell [14K]

Answer:

Po = <u>D1</u>        +     <u>D2</u>    +        <u> D3</u>

       (1 + Ke)     (1 + Ke)2   (1 + Ke)3                                                                                                                                          

Po = <u>$12</u> +   <u>$12.50</u> +      <u>$28 </u>

     (1 + 0.1)    (1 + 0.1)2   (1 + 0.1)3

Po = <u>$12</u> + <u>$12.50</u> + <u>$28</u>

        1.1       (1.1)2        (1.1)3

Po = $10.91 + $10.33 + $21.04

Po = $42.28  

                                                                                   

Explanation:                                                                      

The current stock price is a function of future dividends capitalised at the cost of capital of the company of 10% for a period of 3 years.  

6 0
3 years ago
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